The International Monetary Fund (IMF) has warned that China’s slow economic recovery will negatively affect the growth of Sub-Saharan African economies like Angola, and Nigeria, resulting in a 0.5 percentage point reduction in average growth.

In a statement released by the IMF, China is the region’s largest single-country trading partner, as it buys one-fifth of the region’s exports — metals, minerals, and fuel —and provides most of the manufactured goods and machinery imported in the region.

The international lender stated “However, China’s recovery from the pandemic has slowed recently due to a property downturn and flagging demand for its manufactured goods as global growth has also slowed,”

“This matters for Africa. A one percentage point decline in China’s growth rate could reduce average growth in the region by about 0.25 percentage points within a year, according to the latest Regional Economic Outlook. For oil exporters, such as Angola and Nigeria, the loss could be 0.5 percentage points on average,” it stated.

Source: BI